National Intervention Measures

The below questions and answers aim to provide you with more information about the specifics of the National Intervention Measures implemented by CySEC which replaced the ESMA Intervention Measures as of 27th September 2019.

What does ESMA mean?

ESMA is the European Securities and Markets Authority, an independent regulatory institution with a mission to enhance investor protection and promote stable and orderly financial market in the European Union (EU).

What does National Intervention Measures mean?

The National Intervention Measures are replacing the temporary intervention measures implemented by ESMA and shall permanently intervene in the sales and distribution of CFD’s to Retail Clients.

What are the new National Intervention Measures introduced in 2019?

Effective from 27th September 2019, CySEC has formally adopted the ESMA measures on the provision of CFDs to Retail Clients in the national law of Cyprus. These measures can also be referred to as restrictions while they aim to further regulate and harmonize the Financial Services market in the EU.

The measures include: average limits on opening positions, a margin close out rule on a per account basis, a negative balance protection on a per account basis, a Company specific risk warning delivered in a standardized way and preventing the use of incentives by a CFD provider. As a licensed and regulated institution, GBE Brokers Ltd. has adopted and follows the regulations as of its effective date.

What if You do not live within the European Union?

The National Intervention measures apply to all Retail Clients trading with GBE Brokers Ltd. regardless of Client‘s country of residence.

Will the National Intervention measures impact You?

If You are trading as a Professional client with GBE brokers these measures will not impact You.

However, if You are trading as a Retail client, Your maximum available leverage will be limited.

The table below highlights the National Intervention Measures limits on leverage and account features for Retail Clients and Professional Clients:

ElementElective Professional ClientsRetail Clients (ESMA Measures)
Leverage
Major indices1:501:20
Major currencies1:2001:30
Metals1:1001:10
Commodities1:501:10
Shares1:51:2
Cryptocurrencies1:51:2
Account Features
Client Relationship Manager
Negative balance protection
50% margin close out rule
Client Money Remains Segregated
Eligible for ICF (Investment Compensation Fund)
Retain rights to complain to the Financial Ombudsman Service*
Best Execution & Trade Confirmations
Key Information Documents

Can a Retail client apply to be classified as a Professional?

Yes. A Retail client can submit an “Elective Professional Application”, if the Retail client wishes to apply to become a Professional.

GBE brokers ltd. will carry out an assessment of the Elective Professional Application and will respond back to the applicant. It will be at GBE brokers ltd’s absolute discretion to accept or reject an application, even if the criteria are fully fulfilled.

What are the key criteria required to become a Professional client?

There are three criteria groups. You need to confirm and demonstrate that You meet any two of these as part of the application process:

  • You own a financial instrument portfolio (including cash deposits and financial instruments) exceeding EUR 500,000.
  • You have trading experience of a significant size in CFDs, spread betting or forex at an average frequency of 10 times in each quarter of the last 4 quarters.
  • You are working, or have worked in the financial sector for at least one year in a professional position, which requires knowledge of leveraged products, such as CFDs.

What documentation do You need to submit to support Your Elective Professional Application?

  • Copies of bank statements, share certificates, broker accounts or others that demonstrate deposits or investments with a total value of 500,000 EUR or more.
  • Documents showing that You have worked in the Financial sector for over one year in a professional position requiring knowledge of leveraged products, such as CFDs.
  • Evidence of trading activity of at least 40 significant transactions executed over the past year. These can be a mixture of such executed at GBE brokers and/or at another institution.

Will You get negative balance protection as an elective Professional Client?

Yes. GBE brokers offers Negative Balance Protection to both Retail and Professional clients.

Please be aware that Professional clients waive various protections provided by the regulatory authorities. For more information on this matter please refer to GBE brokers ltd’s Client Categorisation Policy. Please ensure that You have fully read and understood all our terms before submitting an Elective Professional Application. 

What are the margin requirements for a Professional trader?

Lets look at this example.

If You place a 5 contracts DAX trade at a price of €12,312.50 with GBE brokers:

  • Retail client margin required in accordance with the new ESMA regulation will be €3,079.
  • Professional client margin required will be €1,232.

Where can I find the Elective Professional Application form?

The Elective Professional Application form is available on MyGBE portal. If You wish to access the form please login to MyGBE portal and locate the Elective Professional Application button positioned on the left hand side menu under the Information & Tools section.

Alternatively click on this link after You have first successfully logged in to MyGBE.

Are the National Intervention measures permanent?

Yes, the National Intervention measures are permanently established and may be reviewed from time to time by CySEC.

Will the Demo account conditions change?

Yes. GBE brokers demo accounts are in line with our live accounts and therefore the above measures will be applied to the demo environment for Retail traders.

Can You change Your mind and return back to Retail client category?

Yes. You are allowed to change Your mind even if we have already approved Your application. You can inform us in writing in case that You no longer wish to trade as an “Elective Professional” and GBE brokers ltd. will change Your classification back to “Retail”.

Do the new National Intervention measures apply to companies as well?

National Intervention measures will apply to those companies who are categorized as Retail clients.

Can a company submit an Elective Professional Application?

Yes. Companies who are classified as Retail clients at GBE brokers are allowed to submit an Elective Professional Application.